IFA: importers hurting cereal industry
Grain Committee chairman Paddy Harrington said indicated green prices are failing to cover production costs.
“The short sighted actions of a number of key importers in pursuit of increased market share will ultimately lead to a much reduced Irish cereal industry.
“Already, this year’s cereal area is back by 13% despite the fact that last year’s yields were 12% above the five-year average,” he said.
Mr Harrington said a further 20% fall in the cereal area is likely this coming year, if a green price of €105 / tonne at 20% moisture does not materialise.
Production costs have risen by €7-€9 / tonne in the last five years, while grain prices have remained static or fallen.
“Even at €105 / tonne, many growers will be struggling to break even, given that this year’s yields will be close to or under the five-year average,” he said.
Mr Harrington said this will have serious implications for the industry and a knock-on effect on the intensive livestock sectors.
“We will see an increased reliance on imports, greater price volatility and reduced security of supply.
“The reduced availability of arable spread land for pig, poultry and cattle manures will also have negative cost implications, particularly for the pig and poultry sectors under the current proposed nitrates directive,” he said.
He added farmers are being denied the chance to recoup increased costs from the market, unlike other sectors.
